Audi will invest four billion dollars to build its first United States manufacturing plant in Peach County, Georgia, targeting an annual capacity of 200,000 sport utility vehicles by the early 2030s while managing heavy financial pressure from import tariffs.
Chief executive Gernot Döllner joined President Donald Trump on stage at a campaign rally in Perry, Georgia, to unveil the greenfield project. Parent company Volkswagen has faced mounting economic friction from trade policy, reporting that tariffs cost it up to five billion euros annually before factoring in lost sales. The German luxury automaker chose the 1,474-acre Middle Georgia Megasite along Georgia Highway 96 near Interstate 75 for its first standalone American production facility.
Tariff Pressures Lead to Georgia Factory
For Audi, local assembly serves as a direct defense against trade penalties. Last year alone, tariffs cost Audi 1.2 billion euros, squeezing profit margins as the group simultaneously finances an expensive transition to electric vehicles in Europe and grapples with domestic job cuts. Because Audi imports all of its American inventory from Europe and Mexico rather than utilizing local production like rivals BMW and Mercedes-Benz, it faces severe trade penalties, with the top-selling Q5 hit especially hard due to its failure to satisfy USMCA trade stipulations. Audi’s US sales fell 16% through September, and during the first half of 2026, Volkswagen’s Audi, Bentley, and Lamborghini brands recorded a combined 7% decline in US deliveries compared with the same period in 2025.
PERRY — President Donald Trump on Saturday announced German automaker Audi will spend $4.2 billion to build its first U.S. manufacturing facility near Macon, touting the massive project at a campaign rally aimed at boosting Georgia Republicans https://t.co/BGhoIGv8Vy
We are planning to bring our biggest and most premium SUVs, and produce them here in Macon, Georgia.
Gernot Döllner, Audi CEO
The brand has historically relied on overseas facilities to supply American buyers, exposing its lineup to a 15% tariff on imports from the European Union. The new plant is designed to manufacture large, high-end sport utility vehicles tailored specifically to North American tastes. Government officials indicate the facility will assemble the Audi Q7, Q8, and Q9 models, shifting some production away from Bratislava in Slovakia. Given that the Peach County facility requires at least five years before it becomes operational, Audi plans to manufacture updated editions of the Q7 and Q9 locally during the interim period, while the Q8 will continue into a subsequent generation in order to earn the made-in-USA designation. Company executives stress that the investment also addresses long-term sales access and regional supply chain integration, supported by public-sector partners including the Georgia Department of Economic Development, Georgia Ports Authority, Georgia Department of Transportation, Georgia Power, Norfolk Southern as the rail infrastructure provider, and the College System of Georgia.
This is a long-term investment because we believe in the American market.
Gernot Döllner, Audi CEO
Mid-Georgia Counties Coordinate to Build Vehicle Production Lines
Peach, Macon-Bibb, and Houston counties formed the Mid-Georgia Gateway Joint Development Authority on May 19, 2026, to pitch the property as a unified regional opportunity rather than competing individually.
'Without tariffs, they wouldn’t be coming in': Trump announces $4.2 billion Audi plant in GeorgiaTrump credited his tariff policies for Volkswagen's planned Audi manufacturing facility, expected to create around 4,500 jobs, as Republicans struggle to gain ground in Georgia's…
Site preparation and land grading are scheduled to begin in 2027, with construction scheduled to begin in 2028. According to plans outlined by the development authority, full production lines targeting the early 2030s will create up to 200,000 vehicles annually.
Macon-Bibb Mayor Lester Miller emphasized the cooperative effort behind the recruitment. The impact this investment will have on our entire region will be felt for many decades, and that meant we had to come together as cohesive partners to make it happen,
Miller said. Houston County Commission Chairman Dan Perdue added, We all knew the only thing that mattered was showing them that Middle Georgia was the best place to locate, and that this was the community they wanted to be part of,
noting that the region will focus on preparing its workforce and infrastructure for Audi’s arrival.
Political Timing in Battleground Georgia
President Trump pointed to the investment during his Perry rally as proof that his trade policies successfully draw capital into the United States. The announcement arrived just days before the November 3 midterm elections, providing a high-profile manufacturing talking point for Republicans defending tight congressional seats.
Think of that. 200,000 cars a year. That’s incredible.
Donald Trump, US President
With the facility years away from turning out vehicles, the immediate work focuses on regional infrastructure preparation and workforce development managed by local authorities. The Volkswagen Group also constructs a facility in Blythewood, South Carolina, for Scout Motors to produce Scout Terra sport-utility vehicles alongside Travelers pickup trucks.